Landmark Bancorp(LARK) - 2024 Q4 - Annual Results

Financial Performance - Landmark Bancorp reported a 6.3% increase in net earnings for 2024, totaling $13.0 million compared to $12.2 million in 2023[3] - Diluted earnings per share for Q4 2024 were $0.57, down from $0.68 in Q3 2024 but up from $0.46 in Q4 2023[2] - Basic net earnings per share for the year ended December 31, 2024, were $2.26, compared to $2.13 in 2023, reflecting a growth of 6.1%[24] Loan and Deposit Growth - Total gross loans increased by $51 million, or 20% annualized, in Q4 2024, with a total of $1.1 billion in gross loans as of December 31, 2024[5][13] - Total deposits rose by $53.3 million, or 16.6% annualized, reaching $1.3 billion by December 31, 2024[14] - Gross loans reached $1,052,353 thousand in December 2024, up from $948,656 thousand in December 2023, marking a significant increase of 10.9%[21] - Total deposits rose to $1,328,766 thousand in December 2024, compared to $1,316,251 thousand in December 2023, reflecting an increase of 0.4%[21] Interest Income and Expenses - Net interest income for Q4 2024 was $12.4 million, a 6.9% increase from the previous quarter, with a net interest margin improvement to 3.51%[7][8] - Total interest income for the three months ended December 31, 2024, was $18,952,000, an increase from $17,486,000 for the same period in 2023, representing a growth of 8.4%[24] - Net interest income after provision for credit losses for the year ended December 31, 2024, was $43,424,000, compared to $42,943,000 in 2023, reflecting a year-over-year increase of 1.1%[24] - Non-interest expenses increased to $11.9 million in Q4 2024, up $1.3 million from the prior quarter, driven by higher professional fees and compensation costs[11] Non-Interest Income - Non-interest income decreased to $3.4 million in Q4 2024, primarily due to a $1.0 million loss on the sale of investment securities[10] - Non-interest income for the three months ended December 31, 2024, totaled $3,371,000, up from $2,254,000 in the same period of 2023, marking a significant increase of 49.6%[24] - Adjusted non-interest income increased to $4,340,000 from $3,980,000 in September 2024[30] Asset Quality and Credit Losses - The allowance for credit losses was $12.8 million, or 1.22% of total gross loans, with net loan charge-offs of $219,000 in Q4 2024[16] - The provision for credit losses increased to $1,500,000 for the three months ended December 31, 2024, compared to $50,000 in the same period of 2023, indicating a substantial rise in credit loss provisions[24] - Total non-performing assets decreased to $13,282,000 as of December 31, 2024, from $3,319,000 in the same period of 2023, indicating improved asset quality[26] - Total non-performing loans to gross loans outstanding decreased to 1.25% from 1.34%[27] - Allowance for credit losses to gross loans outstanding increased to 1.22% from 1.15%[27] Tax and Dividends - The effective tax rate for Q4 2024 was (37.0%), reflecting the recognition of $1.0 million in previously unrecognized tax benefits[12] - Landmark declared a cash dividend of $0.21 per share, to be paid on March 5, 2025, marking the 24th consecutive year of stock dividends[5] Balance Sheet Highlights - Total assets increased to $1,574,142 thousand in December 2024, up from $1,561,672 thousand in December 2023, representing a growth of 0.8%[21] - The total stockholders' equity was $136,215 thousand in December 2024, a slight decrease from $126,914 thousand in December 2023, reflecting a change of 7.3%[21] - The total liabilities increased to $1,437,927 thousand in December 2024, compared to $1,434,758 thousand in December 2023, showing a marginal increase of 0.2%[21] - Cash and cash equivalents decreased to $20,275 thousand in December 2024 from $27,101 thousand in December 2023, a decline of 25.3%[21] - The investment securities available-for-sale totaled $372,512 thousand in December 2024, down from $452,769 thousand in December 2023, a decrease of 17.7%[21] Efficiency and Returns - The efficiency ratio for the three months ended December 31, 2024, was 70.0%, compared to 71.9% in the same period of 2023, showing improved operational efficiency[26] - Return on average assets for the three months ended December 31, 2024, was 0.83%, an increase from 0.67% in the same period of 2023[26] - Return on average equity for the three months ended December 31, 2024, was 9.54%, down from 9.39% in the same period of 2023[26] - Efficiency ratio improved to 70.0% from 66.5% in the previous quarter[30] - Tangible equity to tangible assets ratio was 6.58%, down from 6.84% in the previous quarter[30]